Government May Allow Sugar Futures Trading In October (19-Aug-2010)
As the overall sugar production outlook improves, the government is likely to consider lifting the ban on trading in sugar futures. Union Farm and Agriculture Minister Sharad Pawar said on Thursday that the centre government would consider lifting the ban on sugar futures trading in the first week of September, after taking a stock of monsoon performance and potential sugar output in next season.
The government had banned the trading in sugar futures in May 2009 after domestic prices surged sharply in response to decline in production for two consecutive years. However, after hitting a record high levels in January this year, sugar prices have crashed in both Indian and international markets owing to better-than-anticipated production in India in current season and strong production outlook for next season for both India and Brazil, the two top producers of sugar in world.
'I will get to know the sugar production situation in September. I will take a view on it (lifting ban on sugar futures) in the first week of September,' said Pawar when asked if the government would consider removing ban on sugar futures in view of expected surge in supply. Pawar was speaking on sidelines of a National Cooperative Consumers’ Federation (NCCF) function on Thursday.
Earlier, B C Khatua, the chairman of the Forward Markets Commission, the regulator for futures trading in the country, had also indicated that trading in sugar futures might be restored from October on account of potential jump in supplies expected over the next season. Sugar season in India starts from October with the beginning of cane-crushing.
The centre has in fact taken a number of steps recently to ease the controls on the sugar sector that were imposed after prices of the sweetener increased nearly 100% due to tight supply conditions in both India and international markets last year. It has increased stock holding limits for sugar for bulk consumers from 15 days to 90 days for a period of six months. It has also allowed export of white sugar stuck in Kandla and Mundra ports on the condition that exporting mills will re-import similar amount when need arises.
Top News Today
 Auto major, Mahindra & Mahindra (M&M) is all set to introduce a smaller version of its multi-purpose vehicle Xylo by Diwali this year as it aims to expand its customer base in the country. The company,
 Godrej Properties, Mumbai based real estate developer launched its new residential project Godrej Alpine in Mangalore. It aims to complete 499-apartment Godrej Alpine for occupation in 36 months. Godrej
 Mahindra & Mahindra, auto major has stopped the second phase of booking for its latest sports utility vehicle XUV500. It has received over 25,000 orders in a period of 10 days from January 25 to February
|
International Stock News
 The US markets rose on Monday, sending the Dow industrials to their highest close since 2008, as Greece's government made progress on measures to secure international aid. Also, a Labor Department report
 The US markets made a mix closing on Thursday, as a drop in jobless claims fueled optimism about the economy and investors looked to the next day's employment report as the next indicator of the economic
 The US markets made a mixed closing on Tuesday, with the indices mostly slipping after US economic data failed to live up to expectation. The reports showed that American consumer confidence trailed estimates
|
|
|